Question: fIf this worker's wage is $20, what is the worker's optimal hours worked? Given this result, we can determine the relative sizes of the worker's

$\fIf this worker's wage is $20, what is the worker's optimal$ hours worked? Given this result, we can determine the relative sizes of the worker's substitution and income effects. The absolute value of the worker's

substitution effect is SE and the absolute value of the worker's income

effect is IE. In this case: O SE>IE O IE>SE O SE=IE

\fIf this worker's wage is $20, what is the worker's optimal hours worked? Given this result, we can determine the relative sizes of the worker's substitution and income effects. The absolute value of the worker's substitution effect is SE and the absolute value of the worker's income effect is IE. In this case: O SE>IE O IE>SE O SE=IE

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